Fund Supermarket FAQs
We hope that you find the answer to your question on this page, but if you need further help please contact us online, or call us on 0800 072 3186.
- What products can I buy?
- Over 1,000 investment funds are available. You can invest in them via a new ISA, an ISA or PEP Transfer, a Unit Trust or OEIC fund and through re-registration.
- What is the difference between a supermarket ISA or PEP and one bought directly from a fund manager?
- The supermarket allows you to invest in the funds of any one, or more than one, of the 55 fund managers offered. With a fund manager as the ISA provider, you would only be allowed to invest in their range of funds, not in the funds of any other fund manager. The supermarket allows you to create a portfolio of funds (currently over 900 funds are available) from a mix of fund managers through us. You can switch between different funds and managers at any time, paying only the reduced initial charges on each fund bought. PEPs operate in exactly the same way.
- What are the charges?
- The supermarket levies no charges itself. There are reduced buying costs for each fund and standard annual fund charges. Normal Torquil Clark discounts apply to funds within the supermarket, so initial costs have been reduced to less than 1% in most cases. A lot of funds are available for 0.25% or no initial costs. Some ISA funds are CAT marked. There are no selling costs or other charges. When you switch funds within your supermarket ISA you only pay a maximum 0.25% discounted initial charge on the new funds that you are buying. CAT marked ISA funds carry no initial charge. Funds to be invested in PEP Transfer plans carry the same initial charges as ISA funds. Funds purchased outside of these tax-free wrappers are slightly more expensive, but initial charges have still been reduced to less than 1.5% on average.
- What is the minimum investment?
- Funds have a minimum investment of £200. For monthly contributions, the minimum investment is £50 per fund, except £100 per month for Fidelity Triple ISAs.
- Is there a maximum number of funds or fund managers that I can include in one ISA or PEP?
- No there is no maximum, as long as the investment in each fund exceeds the minimum amounts. So, for example, a £7,200 ISA investment could be split into 7 funds, each with a different manager.
- Can I invest monthly?
- It is possible to make monthly contributions into our Fund Supermarket. At present, it is only possible to set this up by post, so please contact us to request an application form.
- What does ‘phasing’ mean?
- For maxi ISAs, investors can elect to have their lump sum investment drip-fed into the funds of their choice over a six month period. This means that on the first day only one-sixth of your lump sum is invested, with the remainder safely deposited in a cash account earning interest. Each month a further one-sixth is switched from your cash account to the funds you have selected, thereby reducing your risk of a market fall affecting the value of your investment in the short term. To take advantage of this option, just tick the appropriate box on the application form online or offline.
- Who are Fidelity FundsNetwork?
- The Torquil Clark Fund Supermarket product and systems provider. Part of Fidelity Investments, the largest fund manager in the world and one of the largest provider of fund supermarkets. Fidelity Investments also offer their own funds for sale within the supermarket.
- How does the supermarket work?
- The supermarket centralises the administration, making it more efficient and lowering costs which pay for the enhanced services on offer. Rather than each fund manager dealing with individual investments, the supermarket takes over this role and becomes the account manager. Once a day the supermarket will amalgamate orders for each fund and fund manager and place one BUY or SELL deal. The supermarket then allocates the correct amounts to each investor and sends a contract note confirming each individual order. The supermarket deals with all the tax reclaims (for ISAs and PEPs), statements and valuations. Privacy is enhanced as each fund manager does not know the names of individual investors - only the supermarket knows these details. The cost savings mean that the whole supermarket operation, from online account opening to on-going service and management is free to the investor. Initial and annual fund charges remain the same, with the normal Torquil Clark discounts applying.
- Do normal ISA or PEP rules apply?
- Yes. The limits on investment - £7,200 - remain as do all the other rules. Normal rules also apply for PEP Transfer investments.
- But I thought the ISA rules only allowed me to invest with one manager per year?
- The rules restrict you to investing with only one ISA manager per year, rather than only one fund manager. In the Torquil Clark Fund Supermarket, Fidelity FundsNetwork act as the ISA manager, whilst the fund manager purely manages the investment fund.
- Is buying online secure?
- Security is often rightly cited as the major area of concern for consumers – online or offline. Maintaining security is paramount to the successful operation of the Torquil Clark Fund Supermarket. One of the main reasons we chose Fidelity FundsNetwork as our supermarket provider is their level of security. As you would expect your data is kept in a secure location (using 128 bit encryption), and you will notice a ‘padlock’ appearing in your browser whenever you access your account or apply for a new investment – signifying that you are in a secure area. Fidelity’s security measures also include a time-out mechanism if any one secure page is displayed for too long. In order to continue you would have to close your browser (not just that window) completely and reconnect. We find it reassuring that Fidelity are renowned for their expertise in IT, and have considerable experience of securely operating fund supermarkets in the US.
- How do I research funds?
- Go to the fund research area of our website.
